HBGary Federal had been set up with Aaron Barr as CEO instead of Hoglund to provide services and tools to the US government, which might require security clearance.[9] As HBGary Federal could not meet revenue projections, in early 2011 negotiations about the sale of HBGary Federal were in progress with two interested companies.[10]

In 2010, Aaron Barr, CEO of HBGary Federal, alleged that he could exploit social media to gather information about hackers.[3]

In early 2011, Barr claimed to have used his techniques to infiltrateAnonymous,[3][11][12] partly by using IRC, Facebook, Twitter, and by social engineering.[3][13] His e-mails depict his intention to release information on the identities of Anonymous members at the B-Sides conference and to sell it to possible clients,[3][14] including the FBI.[15] In the e-mails, Barr explained that he identified his list of suspected Anonymous "members" by tracing connections through social media, while his main programmer criticized this methodology.[3][16] In a communiqué, Anonymous denied association with the individuals that Barr named.[17][18]

On February 5–6, 2011, Anonymous compromised the HBGary website, copied tens of thousands of documents from both HBGary Federal and HBGary, Inc., posted tens of thousands of both companies' emails online, and usurped Barr's Twitter account in apparent revenge.[13][19][20] Anonymous also claimed to have wiped Barr's iPad remotely, though this act remains unconfirmed.[3][14][21][22] The Anonymous group responsible for these attacks would go on to become LulzSec.[23]

Some of the documents taken by Anonymous show HBGary Federal was working on behalf of Bank of America to respond to WikiLeaks' planned release of the bank's internal documents.[4][24] "Potential proactive tactics against WikiLeaks include feeding the fuel between the feuding groups, disinformation, creating messages around actions to sabotage or discredit the opposing organization, and submitting fake documents to WikiLeaks and then calling out the error."[25]

In additional emails published in November 2016 by Wikileaks, two employees of HBGary referenced a blog post that endorsed manipulating translation software in order to 'mitigate' damaging content within information leaks.[26]

The conflict with Anonymous caused substantial public relations damage. As a result, the involved organizations took steps to distance themselves from HBGary and HBGary Federal:

February 7, 2011: Penny Leavy, President of HBGary Inc., entered an Anonymous IRC channel to negotiate with the group.[3] She distanced her company from their partially owned subsidiary HBGary Federal, clarified the separation of the two, and asked Anonymous to refrain from attacks or leaks that would damage HBGary Inc. and its customers.[29]

February 10, 2011: The Chamber of Commerce issued a statement denying they hired HBGary,[30] calling the allegation a "baseless smear," and criticizing the Center for American Progress and its blog, ThinkProgress, for "the illusion of a connection between HBGary, its CEO Aaron Barr and the Chamber."[31] The Chamber denied the truth of accusations[32] previously leveled by ThinkProgress, stating "No money, for any purpose, was paid to any of those three private security firms by the Chamber, or by anyone on behalf of the Chamber, including Hunton and Williams."[31]

February 11, 2011: Palantir's CEO apologized to Glenn Greenwald and severed "any and all contacts" with HBGary.[25][33]

The CEO and COO of Berico similarly stated that they had "discontinued all ties" with HBGary Federal.[34]

February 28, 2011: Aaron Barr announced his resignation from HBGary Federal to "focus on taking care of my family and rebuilding my reputation."[35]

March 1, 2011: 17 members of the United States Congress called for a congressional investigation for possible violation of federal law by Hunton & Williams and "Team Themis" (the partnership between Palantir Technologies, Berico Technologies, and HBGary Federal).[36]

March 16, 2011: The House Armed Services Subcommittee on Emerging Threats and Capabilities asked the Defense Department and the National Security Agency to provide any contracts with HBGary Federal, Palantir Technologies and Berico Technologies for investigation.[37]

It has been reported that HBGary Federal was contracted by the US government to develop astroturfing software which could create an "army" of multiple fake social media profiles.[38][39]

Later it was reported that while data security firm HBGary Federal was among the "Persona Management Software" contract's bidders listed on a government website, the job was ultimately awarded to a firm that did not appear on the FedBizOpps.gov page of interested vendors. "This contract was awarded to a firm called Ntrepid," Speaks wrote to Raw Story.[40]

HBGary had made numerous threats of cyber-attacks against WikiLeaks. The dossier of recently exposed emails revealed HBGary Inc. was working on the development of a new type of Windowsrootkit, code named Magenta,[15] that would be "undetectable" and "almost impossible to remove."[41]

In October 2010, Greg Hoglund proposed to Barr creating "a large set of unlicensed Windows 7 themes for video games and movies appropriate for middle east & asia" [sic] which "would contain back doors" as part of an ongoing campaign to attack support for WikiLeaks.[42]

On 29 February 2012 ManTech International announced its purchase of HBGary, Inc.[51] Financial terms of the acquisition were not disclosed other than to say it was an "asset purchase", which excludes legal and financial liabilities.[51]

^ abcLeigh, Lundin (2011-02-20). "Wikilicks". Criminal Brief. Retrieved 2011-02-20. CEO Aaron Barr thought he'd uncovered the hackers' identities and like rats, they'd scurry for cover. If he could nail them, he could cover up the crimes H&W, HBGary, and BoA planned, bring down WikiLeaks, decapitate Anonymous, and place his opponents in prison while collecting a cool fee. He thought he was 88% right; he was 88% wrong.